PepsiCo Inc. has announced that the Federal Antimonopoly Service of the Russian Federation has issued approvals for PepsiCo’s previously announced acquisition of Wimm-Bill-Dann Foods OJSC, Russia’s leading branded food and beverage company. As a result, PepsiCo has received all regulatory approvals required as conditions to completing the acquisition. Under the acquisition agreement, a subsidiary of PepsiCo will acquire approximately 66% of Wimm-Bill-Dann from a group of shareholders and subsidiaries of Wimm-Bill-Dann for approximately $3.8 billion. PepsiCo plans to close the acquisition, which remains subject to the satisfaction of certain other customary closing conditions, on or about Feb. 8, 2011. After closing the acquisition agreement, PepsiCo will own approximately 77% of the total outstanding ordinary shares of Wimm-Bill-Dann.
This transaction will make PepsiCo the largest food and beverage business in Russia and will strengthen the company’s position in the fast-growing Eastern European and Central Asian markets. It also will raise PepsiCo’s annual global revenues from nutritious and functional foods from approximately $10 billion today to nearly $13 billion. This moves the company closer to its strategic goal of building a $30 billion nutrition business by 2020.